a frequently asked question by employers setting up a formal plan premium reimbursement is, "does the premium payment plan should cover all ten essential health benefits?" the answer? See
Note -. This question was raised during our recent webinar Can Premium Tax-Free Money Work For You? If you want to download the webinar and slides on request here.
What do you mean, Premium Refund?
redemption premium is a strategy health benefits of the employer to reimburse employees for individual health insurance. Think of it as a account business expenses for health benefits .
premium repayment plans experiencing widespread adoption because they allow employers to offer affordable health benefits and use the new benefits of individual health insurance
When an employer sets up a regime of refund of premiums they have two basic options :. 1) a repayment plan favorable tax bonuses (also called repayment plan healthcare or HRP ) or 2) a taxable allowance (giving employees a tax increase for the Health Insurance).
In this article, we discuss a reimbursement scheme advantageous tax incentives, because it is the type of diet most employers (and employees) prefer.
What are the benefits of essential health?
The Affordable Care Act requires health plans offered in the individual and small group markets, both inside and outside the health markets insurance, offer a basic package of ten items and services, known as "essential health benefits. "
Is a redemption premium scheme should cover all essential health services?
No. A repayment plan premium does not need to cover all ten essential health benefits.
Why? the obligation to cover all essential health benefits applies to "health plans offered on the individual and small group market. "a repayment plan premium does not meet this definition. it's as simple as that. (Remember, a Premium repayment plan is not health insurance, it is a repayment plan medical costs.)
As we have written about previously, however, a return of premium scheme not need to cover one of the essential health benefits -. this is preventive care to comply with the PHS Act 2713.
Learn more about this requirement. Preventive Care Reimbursement and employers for health insurance
Conclusion
Is a reimbursement scheme tax benefits premiums must cover all ten essential health benefits? No, but the plan does not need to cover one of the essential health benefits - Preventive care -. And meet other requirements of the market reforms of the Affordable Care Act
What questions do you have about redemption premium and essential health benefits? Leave a comment and we'll help you answer them.
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